General principlas of agency #2 Flashcards
(44 cards)
Consumer
someone who uses or purchases a product or service
Customer
you don’t own fiduciary duties but you own them honesty and fairness
Client
you own fiduciary duties (OLD CAR)
Fiduciary
is someone in a position of trust who own loyalty to another
Agent
someone who acts on behalf of someone else
Universal agent
has broad authority to act on behalf of a principal, such as someone who has the power of authority
Principal
is the same thing as a client
a special agent (aka limited agent)
has limited authority to act on a client’s behalf, such as a real estate agent or an escrow officer. this type of agent cant bind a client into a contract
A general agent
Is responsible for handling all dealings in a given area for a client, such as a property manager. This type of agent may bind a person into a contract
Single agency
licensee own undivided loyalty to the client. Licenses represent one party, either the seller or the buyer
dual agency
a licensee represents the buyer and the seller in the same transaction
Single - license dual agency
is when a single licensee represents both the seller and the buyer in the same transaction
Note: this form of dual agency is NOT practiced in Maryland
dual - licensee dual agency
two separate licensees from a single firm each represent one party (buyer or seller) in the same transaction
sub-agency
is a licensee who works for one firm, but who is engaged by another firm to perform agency functions on behalf of that firm’s client.
Fiduciary responsibility’s
own to clients NOT customers. non-agents don’t have fiduciary duties. The duties include the acronym OLD CAR
obedience loyalty Disclosure Confidentiality Accountability Reasonable skill and care
Power of attorney (POA)
Is a legal document that grants legal rights and powers from one person (the principal) to another to make decisions on behalf of the principal.
Express agency
Is an agency relationship that understands and agreed to by the parties. Spoken or written words create an express agency
Implied agency
The action of the parties creates implied agency
Ratification
is accepted after the fact, either through signing paperwork or through the party’s actions.
Estoppel
prevents one party from suing another
Listing contracts (agreement)
should be in writing for clients’ protection. They almost always require a definite end date
Exclusive agency
agreements allow only one brokerage to market and sell the property. If the seller finds her own buyer, no commission is paid to the brokerage
Exclusive right to sell
agreements provide the listing agent with a commission no matter who brings the buyer to the transaction. It includes definite start and end dates
Open listing
The seller works with multiple agents only the agent who successfully brings the buyer gets a commission